What Does MSRP Actually Mean? List Price vs. Real Price

"MSRP $199 — today only $89!" The manufacturer's suggested retail price is one of the most common reference points in sale advertising. But what does MSRP actually tell you about what an item is worth, or what it normally sells for? Often: very little.

MSRP is a suggestion, not a price

The MSRP (also called list price or sticker price) is the number a manufacturer suggests retailers charge. Retailers are generally free to ignore it — and for many product categories, nearly all of them do. When an item routinely sells everywhere for far less than its MSRP, a discount "from MSRP" is not a discount from any price shoppers actually pay.

When an MSRP comparison can mislead

The Federal Trade Commission's deceptive-pricing guidance addresses this directly: advertising a saving from a list price can be misleading when the list price is not the price at which the item is generally sold in the area. In other words, the question is not whether an MSRP exists on paper — it is whether the comparison creates a false impression of savings.

"List price" strikethroughs online

Online listings often show a crossed-out "list price" above the selling price. If that struck-through number never appears in the product's actual selling history, the visual message — you are saving the difference — may not match reality. Our price-history guide shows how to verify in about a minute.

The bottom line

Judge the price you are asked to pay on its own merits, not against a suggested number. And if you already bought something because an MSRP or list-price comparison made the deal look bigger than it was, report your purchase — consumer reports help us understand which pricing practices deserve a closer look. For the legal backdrop, see what the FTC and state law say.

This article is attorney advertising and is provided for general informational purposes only. It is not legal advice, and reading it does not create an attorney-client relationship.